New York – The US economy grew even faster than thought in the July-to-September period, latest official figures indicate. The world’s largest economy grew at an annualised rate of 3.5 per cent in the quarter, up from an earlier estimate of 3.2 per cent, the Commerce Department said.

It was the second time that the figure had been revised upwards, from an initial 2.9 per cent. The rate of growth in the third quarter was the strongest for two years. The figure outstrips the second-quarter growth rate of 1.4 per cent.

The Commerce Department said consumer spending, which accounts for more than two-thirds of the US economy, increased at a rate of 3 per cent, compared with the previous estimate of 2.8 per cent and the initial estimate of 2.1 per cent.

"The relative boom of the US economy shows no signs of slowing down, with another strong set of GDP figures,” said Dennis de Jong, the managing director at UFX.com.

"US Federal Reserve chair Janet Yellen has already stated that another round of rate rises are on top of her to-do list for 2017. With the incoming president’s fiscal policy largely yet to take shape, a period of cautious optimism will likely remain for some time.”

Agencies